**U.
      S. SECURITIES AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**


(Mark
      One)





x
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934


For
      the
      Fiscal quarter ended **September
      30, 2008**





o
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                ACT OF
                1934


For
      the
      transition period from ___________ to _____________





Commission
      File Number: 333-150266





BNH
      INC.


(Name
      of
      small business issuer as specified in its charter)





Nevada
            
            92-0189305(State
                or other jurisdiction of
              incorporation
                or organization)
            
            (I.R.S.
                Employer
              Identification
                No.)





BNH
      INC.


c/o
      Nehemya Hesin


29
      Rashbi
      St. Apt # 19


Modiin
      Illit, Israel, 71919





(Address
      of principal executive offices, including zip code)










Indicate
      by check whether the registrant (1) filed all reports required to be filed
      by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12
      months (or for such shorter period that the registrant was required to file
      such
      reports), and (2) has been subject to such filing requirements for the past
      90 days.


Yes **x** No o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.


(Check
      one): Large accelerated filer o Accelerated
      filer  ̈ Non-accelerated
      filer  ̈ Smaller
      reporting company x





Indicate
      by check mark whether the Registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


YES  ̈ NO x





The
      issuer had 7,000,000 shares of its common stock issued and outstanding as of
      November 6, 2008.







**TABLE
      OF CONTENTS**





**Page****PART
                I**ITEM
                1.
            
            Financial
                Statements
            2ITEM
                2.
            
            Management's
                Discussion and Analysis of Financial Condition and Results of Operations
            11ITEM
                3.
            
            Quantitative
                and Qualitative Disclosures about Market Risk
            12ITEM
                4.
            
            Controls
                and Procedures
            12**PART
                II**ITEM
                1.
            
            Legal
                Proceedings
            13ITEM 1A.
            
            Risk
                Factors
            13ITEM
                2.
            
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            13ITEM
                3.
            
            Quantitative
                and Qualitative Disclosures about Market Risk
            13ITEM
                4.
            
            Submission
                of Matters to a Vote of Security Holders
            13ITEM
                5.
            
            Other
                Information
            13ITEM
                6.
            
            Exhibits
            13










**Cautionary
      Statement Concerning**


**Forward-Looking
      Statements**





USE
      OF
      NAMES




In
      this
      quarterly report, the terms “BNH,” “Company,” “we,” or “our,” unless the context
      otherwise requires, mean BNH Inc.




CAUTIONARY
      STATEMENT REGARDING FORWARD-LOOKING STATEMENTS




This
      Quarterly Report on Form 10-Q and other reports that we file with the SEC
      contain statements that are considered forward-looking statements.
      Forward-looking statements give the Company’s current expectations, plans,
      objectives, assumptions, or forecasts of future events. All statements other
      than statements of current or historical fact contained in this annual report,
      including statements regarding the Company’s future financial position, business
      strategy, budgets, projected costs and plans and objectives of management for
      future operations, are forward-looking statements. In some cases, you can
      identify forward-looking statements by terminology such as “anticipate,”
“estimate,” “plans,” “potential,” “projects,” “ongoing,” “expects,” “management
      believes,” “we believe,” “we intend,” and similar expressions. These statements
      are based on the Company’s current plans and are subject to risks and
      uncertainties, and as such the Company’s actual future activities and results of
      operations may be materially different from those set forth in the forward
      looking statements. Any or all of the forward-looking statements in this annual
      report may turn out to be inaccurate and as such, you should not place undue
      reliance on these forward-looking statements. The Company has based these
      forward-looking statements largely on its current expectations and projections
      about future events and financial trends that it believes may affect its
      financial condition, results of operations, business strategy and financial
      needs. The forward-looking statements can be affected by inaccurate assumptions
      or by known or unknown risks, uncertainties, and assumptions due to a number
      of
      factors, including:




·
            dependence
                on key personnel;




·
            competitive
                factors;




·
            degree
                of success of research and development
                programs




·
            the
                operation of our business; and




·
            general
                economic conditions in the United States and
                Israel.




These
      forward-looking statements speak only as of the date on which they are made,
      and
      except to the extent required by federal securities laws, we undertake no
      obligation to update any forward-looking statements to reflect events or
      circumstances after the date on which the statement is made or to reflect the
      occurrence of unanticipated events. In addition, we cannot assess the impact
      of
      each factor on our business or the extent to which any factor, or combination
      of
      factors, may cause actual results to differ materially from those contained
      in
      any forward-looking statements. All subsequent written and oral forward-looking
      statements attributable to the Company or persons acting on its behalf are
      expressly qualified in their entirety by the cautionary statements contained
      in
      this Quarterly Report.





**PART
      I**


**Item
      1. Financial Statements.**





**BNH
      INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**BALANCE
      SHEETS (NOTE 2)**


**AS
      OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007**


**(Unaudited)**





**September 30,**
            
            **December 31,****2008**
            
            **2007****(Unaudited)**
            
            **(Audited)****ASSETS****Current
                Assets:**Cash
                in bank
            
            $
            17,325
            
            $
            26,440Prepaid
                expenses
            
            
            626
            
            
            -Total
                current assets
            
            
            17,951
            
            
            26,440**Total
                Assets**
            
            $
            17,951
            
            $
            26,440**LIABILITIES
                AND STOCKHOLDERS' EQUITY****Current
                Liabilities:**Accounts
                payable
            
            $
            7,314
            
            $
            488Accrued
                liabilities
            
            
            3,750
            
            
            20,500Due
                to shareholder
            
            
            250
            
            
            250Total
                current liabilities
            
            
            11,314
            
            
            21,238Total
                liabilities
            
            
            11,314
            
            
            21,238**Commitments
                and Contingencies**
            
            
            -
            
            
            -**Stockholders'
                Equity:**Preferred
                stock, par value $0.001 per share, 5,000,000 shares authorized; no
                shares
                issued and outstanding
            
            
            -
            
            
            -Common
                stock, par value $0.001 per share, 100,000,000 shares authorized;
                7,000,000 and 6,000,000 shares issued and outstanding
                respectively
            
            
            7,000
            
            
            6,000Additional
                paid-in capital
            
            
            48,000
            
            
            24,000Paid
                stock subscription
            
            
            -
            
            
            1,000(Deficit)
                accumulated during development stage
            
            
            (48,363
            )
            
            (25,798
            )Total
                stockholders' equity
            
            
            6,637
            
            
            5,202**Total
                Liabilities and Stockholders' Equity**
            
            $
            17,951
            
            $
            26,440





The
      accompanying notes to financial statements are  an
      integral part of these statements.


2


**BNH
      INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENTS
      OF OPERATIONS (NOTE 2)**


**FOR
      THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2008
      AND**


**CUMULATIVE
      FROM INCEPTION (SEPTEMBER 4, 2007)**


**THROUGH
      SEPTEMBER 30, 2008**


( **Unaudited** )





**Three Months**
            
            **Nine Months****Ended**
            
            **Ended**
            
            **Cumulative****September 30,**
            
            **September 30,**
            
            **From****2008**
            
            **2008**
            
            **Inception****Revenues**
            
            $
            -
            
            $
            -
            
            $
            -**Expenses:**General
                and administrative-Professional
                fees
            
            
            7,577
            
            
            19,577
            
            
            40,077Filing
                fees
            
            
            344
            
            
            2,373
            
            
            2,373Officers'
                compensation paid by issued shares
            
            
            -
            
            
            -
            
            
            4,750Organization
                costs
            
            
            -
            
            
            -
            
            
            488Bank
                charges
            
            
            41
            
            
            615
            
            
            675Total
                general and administrative expenses
            
            
            7,961
            
            
            22,565
            
            
            48,363**(Loss)
                from Operations**
            
            
            (7,961
            )
            
            (22,565
            )
            
            (48,363
            )**Other
                Income (Expense)**
            
            
            -
            
            
            -
            
            
            -**Provision
                for income taxes**
            
            
            -
            
            
            -
            
            
            -**Net
                (Loss)**
            
            $
            (7,961
            )
            $
            (22,565
            )
            $
            (48,363
            )**(Loss)
                Per Common Share:**(Loss)
                per common share - Basic and Diluted
            
            $
            (0.00
            )
            $
            (0.00
            )**Weighted
                Average Number of Common Shares****Outstanding
                - Basic and Diluted**
            
            
            7,000,000
            
            
            6,919,708




The
      accompanying notes to financial statements are


an
      integral part of these statements.


3


**BNH
      INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENTS
      OF CASH FLOWS (NOTE 2)**


**FOR
      THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND**


**CUMULATIVE
      FROM INCEPTION (SEPTEMBER 4, 2007)**


**THROUGH
      SEPTEMBER 30, 2008**


( **Unaudited** )





**Nine Months****Ended**
            
            **Cumulative****September 30,**
            
            **From****2008**
            
            **Inception****Operating
                Activities:**Net
                (loss)
            
            $
            (22,565
            )
            $
            (48,363
            )Adjustments
                to reconcile net (loss) to net cash provided by operating
                activities:Common
                stock issued for officers' compensation
            
            
            -
            
            
            4,750Changes
                in net assets and liabilities-Prepaid
                expenses
            
            
            (626
            )
            
            (626
            )Accounts
                payable
            
            
            6,825
            
            
            7,313Accrued
                liabilites
            
            
            (16,750
            )
            
            3,750**Net
                Cash Used in Operating Activities**
            
            
            (33,116
            )
            
            (33,176
            )**Investing
                Activities:**Cash
                provided by investing activities
            
            
            -
            
            
            -**Net
                Cash Provided by Investing Activities**
            
            
            -
            
            
            -**Financing
                Activities:**Loan
                from shareholder
            
            
            -
            
            
            250Issuance
                of common stock for cash
            
            
            24,000
            
            
            50,250**Net
                Cash Provided by Financing Activities**
            
            
            24,000
            
            
            50,500**Net
                (Decrease) Increase in Cash**
            
            
            (9,116
            )
            
            17,325**Cash
                - Beginning of Period**
            
            
            26,440
            
            
            -**Cash
                - End of Period**
            
            $
            17,325
            
            $
            17,325**Supplemental
                Disclosure of Cash Flow Information:**Cash
                paid during the period for:Interest
            
            $
            -
            
            $
            -Income
                taxes
            
            $
            -
            
            $
            -





On
      October 18, 2007, the Company issued 1,500,000 shares of common stock, valued
      at
      $1,500 to an officer of the Company for services rendered.


On
      October 25, 2007, the Company issued 250,000 shares of common stock, valued
      at
      $250 to an officer of the Company for services rendered.


On
      November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
      at $3,000 to an officer of the Company for services rendered.





The
      accompanying notes to financial statements are an integral part of these
      statements.


4


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


**1.****Summary
      of Significant Accounting Policies**




*Basis
      of Presentation and Organization*





BNH
      Inc.
      (the “Company”) is a Nevada corporation in the development stage, and has
      commenced limited operations. The Company was incorporated under the laws of
      the
      State of Nevada on September 4, 2007. The proposed business plan of the Company
      is to  establish
      the Company as a distributor of bio-degradable plastic utensils. The
      accompanying financial statements of the Company were prepared from the accounts
      of the Company under the accrual basis of accounting.





On
      September 4, 2007, pursuant to the terms of a subscription agreement, the
      Company sold 250,000 shares of common stock to Mrs. Goldy Klein, Secretary,
      for
      cash payment of $250 (par value). The Company believes this issuance was deemed
      to be exempt under Regulation S of the Securities Act.





On
      October 18, 2007, the Company issued 1,500,000 shares of common stock, valued
      at
      $1,500 to an officer of the Company for services rendered.





On
      October 25, 2007, the Company issued 250,000 shares of common stock, valued
      at
      $250 to an officer of the Company for services rendered.





On
      November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
      at $3,000 to an officer of the Company for services rendered.





In
      addition, on November 30, 2007, the Company began a capital formation activity
      through a PPO, exempt from registration under the Securities Act of 1933, to
      raise up to $50,000 through the issuance of 2,000,000 shares of its common
      stock, par value $0.001 per share, at an offering price of $0.025 per share.
      As
      of December 27, 2007, the Company had received $26,000 in proceeds from the
      PPO.
      As of January 23, 2008, the Company had fully subscribed the PPO and raised
      $50,000 in proceeds with the issuance of 2,000,000 shares of its common stock.





The
      Company also commenced an activity to submit a Registration Statement on Form
      S-1 to the Securities and Exchange Commission (“SEC”) to register 2,000,000 of
      its outstanding shares of common stock on behalf of selling stockholders. The
      Company will not receive any of the proceeds of this registration activity
      once
      the shares of common stock are sold. The
      Registration Statement on Form S-1 was filed with the SEC on April 16, 2008,
      and
      declared effective on April 30, 2008.





*Unaudited
      Interim Financial Statements*





The
      interim financial statements of the Company as of September 30, 2008, and for
      the nine months ended September 30, 2008 and cumulative from inception, are
      unaudited. However, in the opinion of management, the interim financial
      statements include all adjustments, consisting only of normal recurring
      adjustments, necessary to present fairly the Company’s financial position as of
      September 30, 2008, and the results of its operations and its cash flows for
      the
      nine months ended September 30, 2008, and cumulative from inception. These
      results are not necessarily indicative of the results expected for the calendar
      year ending December 31, 2008. The accompanying financial statements and notes
      thereto do not reflect all disclosures required under accounting principles
      generally accepted in the United States. Refer to the audited financial
      statements of the Company as of March 31, 2008, in its Registration Statement
      on
      Form S-1 filed with the SEC for additional information, including significant
      accounting policies.


5


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


*Cash
      and Cash Equivalents*





For
      purposes of reporting within the statement of cash flows, the Company considers
      all cash on hand, cash accounts not subject to withdrawal restrictions or
      penalties, and all highly liquid debt instruments purchased with a maturity
      of
      three months or less to be cash and cash equivalents.





*Revenue
      Recognition*





The
      Company is in the development stage and has yet to realize revenues from
      operations. Once the Company has commenced full operations, it will recognize
      revenues when delivery of goods or completion of services has occurred, provided
      there is persuasive evidence of an agreement, acceptance has been approved
      by
      its customers, the fee is fixed or determinable based on the completion of
      stated terms and conditions, and collection of any related receivable is
      probable.





*Loss
      per Common Share*





Basic
      loss per share is computed by dividing the net loss attributable to the common
      stockholders by the weighted average number of shares of common stock
      outstanding during the period. Fully diluted loss per share is computed similar
      to basic loss per share except that the denominator is increased to include
      the
      number of additional common shares that would have been outstanding if the
      potential common shares had been issued and if the additional common shares
      were
      dilutive. There were no dilutive financial instruments issued or outstanding
      for
      the period ended September 30, 2008.





*Income
      Taxes*





The
      Company accounts for income taxes pursuant to SFAS No. 109, “ *Accounting
      for Income Taxes”* (“SFAS
      109”). Under SFAS 109, deferred tax assets and liabilities are determined based
      on temporary differences between the bases of certain assets and liabilities
      for
      income tax and financial reporting purposes. The deferred tax assets and
      liabilities are classified according to the financial statement classification
      of the assets and liabilities generating the differences.





The
      Company maintains a valuation allowance with respect to deferred tax assets.
      The
      Company establishes a valuation allowance based upon the potential likelihood
      of
      realizing the deferred tax asset and taking into consideration the Company’s
      financial position and results of operations for the current period. Future
      realization of the deferred tax benefit depends on the existence of sufficient
      taxable income within the carry-forward period under the federal tax
      laws.





Changes
      in circumstances, such as the Company generating taxable income, could cause
      a
      change in judgment about the realizability of the related deferred tax asset.
      Any change in the valuation allowance will be included in income in the year
      of
      the change in estimate.




*Fair
      Value of Financial Instruments*





The
      Company estimates the fair value of financial instruments using the available
      market information and valuation methods. Considerable judgment is required
      in
      estimating fair value. Accordingly, the estimates of fair value may not be
      indicative of the amounts the Company could realize in a current market
      exchange. As of September 30, 2008 and December 31, 2007, the carrying value
      of
      accounts payable-trade and accrued liabilities approximated fair value due
      to
      the short-term nature and maturity of these instruments.





*Deferred
      Offering Costs*





The
      Company defers as other assets the direct incremental costs of raising capital
      until such time as the offering is completed. At the time of the completion
      of
      the offering, the costs are charged against the capital raised. Should the
      offering be terminated, deferred offering costs are charged to operations during
      the period in which the offering is terminated.


6


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


*Concentration
      of Risk*





As
      of
      September 30, 2008 and December 31, 2007, the Company maintained its cash
      account at one commercial bank. The balance in the account was subject to FDIC
      coverage.





*Common
      Stock Registration Expenses*





The
      Company considers incremental costs and expenses related to the registration
      of
      equity securities with the SEC, whether by contractual arrangement as of a
      certain date or by demand, to be unrelated to original issuance transactions.
      As
      such, subsequent registration costs and expenses are reflected in the
      accompanying financial statements as general and administrative expenses, and
      are expensed as incurred.





*Lease
      Obligations*





All
      noncancellable leases with an initial term greater than one year are categorized
      as either capital leases or operating leases. Assets recorded under capital
      leases are amortized according to the methods employed for property and
      equipment or over the term of the related lease, if shorter.





*Estimates*





The
      financial statements are prepared on the basis of accounting principles
      generally accepted in the United States. The preparation of financial statements
      in conformity with generally accepted accounting principles requires management
      to make estimates and assumptions that affect the reported amounts of assets
      and
      liabilities as of September 30, 2008 and December 31, 2007, and expenses for
      the
      period ended September 30, 2008 and December 31, 2007, and cumulative from
      inception. Actual results could differ from those estimates made by
      management.





*Fiscal
      Year End*





The
      Company has adopted a fiscal year end of December 31.





**2.**  **Development
      Stage Activities and Going Concern**





The
      Company is currently in the development stage, and has commenced limited
      operations. The business plan of the Company is to establish the Company as
      a
      distributor of bio-plastic utensils.





During
      the period ended December 31, 2007, the Company began a capital formation
      activity through a PPO, exempt from registration under the Securities Act of
      1933, to raise up to $50,000 through the issuance of 2,000,000 shares of its
      common stock, par value $0.001 per share, at an offering price of $0.025 per
      share. As of January 23, 2008, the Company had fully subscribed the PPO and
      raised $50,000 in proceeds with the issuance of 2,000,000 shares of its common
      stock.





The
      Company also commenced an activity to submit a Registration Statement on Form
      S-1 to the Securities and Exchange Commission (“SEC”) to register 2,000,000 of
      its outstanding shares of common stock on behalf of selling stockholders. The
      Company will not receive any of the proceeds of this registration activity
      once
      the shares of common stock are sold . The
      Registration Statement on Form S-1 was filed with the SEC on April 16, 2008,
      and
      declared effective on April 30, 2008.





The
      accompanying financial statements have been prepared in conformity with
      accounting principles generally accepted in the United States, which contemplate
      continuation of the Company as a going concern. The Company has not established
      any source of revenues to cover its operating costs, and as such, has incurred
      an operating loss since inception. Further, as of September 30, 2008 and
      December 31, 2007, the cash resources of the Company were insufficient to meet
      its current business plan. These and other factors raise substantial doubt
      about
      the Company’s ability to continue as a going concern. The accompanying financial
      statements do not include any adjustments to reflect the possible future effects
      on the recoverability and classification of assets or the amounts and
      classification of liabilities that may result from the possible inability of
      the
      Company to continue as a going concern.


7


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


**3.
      Loan from Stockholder**





As
      of
      September 30, 2008 and December 31, 2007, a loan from an individual who is
      a
      stockholder of the Company amounted to $250. The loan was provided for working
      capital purposes, and is unsecured, non-interest bearing, and has no terms
      for
      repayment.





**4.**  **Common
      Stock**





On
      September 4, 2007, pursuant to the terms of a subscription agreement, the
      Company sold 250,000 shares of common stock to Mrs. Goldy Klein, Secretary,
      for
      cash payment of $250 (par value). The Company believes this issuance was deemed
      to be exempt under Regulation S of the Securities Act.





On
      October 18, 2007, the Company issued 1,500,000 shares of common stock, valued
      at
      $1,500 to an officer of the Company for services rendered.





On
      October 25, 2007, the Company issued 250,000 shares of common stock, valued
      at
      $250 to an officer of the Company for services rendered.





On
      November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
      at $3,000 to an officer of the Company for services rendered.





In
      addition, on November 30, 2007, the Company began a capital formation activity
      through a PPO, exempt from registration under the Securities Act of 1933, to
      raise up to $50,000 through the issuance of 2,000,000 shares of its common
      stock, par value $0.001 per share, at an offering price of $0.025 per share.
      As
      of December 27, 2007, the Company had received $26,000 in proceeds from the
      PPO.
      As of January 23, 2008, the Company had fully subscribed the PPO and raised
      $50,000 in proceeds with the issuance of 2,000,000 shares of its common stock.





The
      Company also commenced an activity to submit a Registration Statement on Form
      S-1 to the Securities and Exchange Commission (“SEC”) to register 2,000,000 of
      its outstanding shares of common stock on behalf of selling stockholders. The
      Company will not receive any of the proceeds of this registration activity
      once
      the shares of common stock are sold. The Registration Statement on Form S-1
      was
      filed with the SEC on April 16, 2008, and declared effective on April 30, 2008.





**5.**  **Income
      Taxes**





The
      provision (benefit) for income taxes for the period ended September 30, 2008
      and
      December 31, 2007, was as follows (assuming a 23% effective tax
      rate):




**2008**
            
            **2007**Current
                Tax Provision:Federal-Taxable
                income
            
            $
            —
            
            $
            —Total
                current tax provision
            
            $
            —
            
            $
            —Deferred
                Tax Provision:Federal-Loss
                carryforwards
            
            $
            5,190
            
            $
            5,934Change
                in valuation allowance
            
            
            (5,190
            )
            
            (5,934
            )Total
                deferred tax provision
            
            $
            —
            
            $
            —




8


**BNH
      INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008 AND DECEMBER 31, 2007**


(Unaudited)




The
      Company had deferred income tax assets as of September 30, 2008 and December
      31,
      2007, as follows:


**2008**
              
              **2007**Loss
                  carryforwards
              
              $
              11,123
              
              $
              5,934Less
                  - Valuation allowance
              
              
              (11,123
              )
              
              (5,934
              )Total
                  net deferred tax assets
              
              $
              —
              
              $
              —




The
      Company provided a valuation allowance equal to the deferred income tax assets
      for the periods ended September 30, 2008 and December 31, 2007 because it is
      not
      presently known whether future taxable income will be sufficient to utilize
      the
      loss carry-forwards.





As
      of
      September 30, 2008, the Company had approximately $48,363 in tax loss
      carry-forwards that can be utilized in future periods to reduce taxable income,
      and expire in the year 2028.




**6.
      Related Party Transactions**





On
      September 4, 2007, pursuant to the terms of a subscription agreement, the
      Company sold 250,000 shares of common stock to Mrs. Goldy Klein, Secretary,
      for
      cash payment of $250 (par value). The Company believes this issuance was deemed
      to be exempt under Regulation S of the Securities Act.





On
      October 18, 2007, the Company issued 1,500,000 shares of common stock, valued
      at
      $1,500 to an officer of the Company for services rendered.





On
      October 25, 2007, the Company issued 250,000 shares of common stock, valued
      at
      $250 to an officer of the Company for services rendered.





On
      November 12, 2007, the Company issued 3,000,000 shares of common stock, valued
      at $3,000 to an officer of the Company for services rendered.





As
      described in Note 3, as of December 31, 2007, the Company owed $250 to an
      individual who is a stockholder of the Company.





**7.**  **Recent
      Accounting Pronouncements**





In
      September 2006, the FASB issued SFAS No. 157, “ *Fair
      Value Measurements* .”
This
      statement defines fair value, establishes a framework for measuring fair value
      in generally accepted accounting principles, and expands disclosure about fair
      value measurements. This statement applies under other accounting pronouncements
      that require or permit fair value measurement, the FASB having previously
      concluded in those accounting pronouncements that fair value is the relevant
      measurement attribute. This statement does not require any new fair value
      measurements. However, for some entities, the application of the statement
      will
      change current practice. This statement is effective for financial statements
      issued for fiscal years beginning after November 15, 2007, and interim periods
      within those fiscal years. The Company does not expect the adoption of this
      pronouncement to have a material impact on its financial
      statements.





In
      September 2006, the FASB issued SFAS No. 158, “ *Employers’
      Accounting for Defined Benefit Pension and Other Postretirement Plans - an
      amendment of FASB Statements No. 87, 88, 106 and 132(R).* ”
This
      statement improves financial reporting by requiring an employer to recognize
      the
      overfunded or underfunded status of a defined benefit postretirement plan (other
      than a multi-employer plan) as an asset or liability in its statement of
      financial position and to recognize changes in that funded status in the year
      in
      which the changes occur through comprehensive income of a business entity or
      changes in unrestricted net assets of a not-for-profit organization. This
      statement also improves financial reporting by requiring an employer to measure
      the funded status of a plan as of the date of its year-end statement of
      financial position, with limited exceptions. The Company does not expect the
      adoption of this pronouncement to have a material impact on its financial
      statements.


9


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


In
      February 2007, the FASB issued SFAS No. 159, “ *The
      Fair Value Option for Financial Assets and Financial Liabilities - Including
      an
      amendment of FASB Statement No. 115* ,”
which
      permits entities to choose to measure many financial instruments and certain
      other items at fair value that are not currently required to be measured at
      fair
      value. An entity would report unrealized gains and losses on items for which
      the
      fair value option has been elected in earnings at each subsequent reporting
      date. The objective is to improve financial reporting by providing entities
      with
      the opportunity to mitigate volatility in reported earnings caused by measuring
      related assets and liabilities differently without having to apply complex
      hedge
      accounting provisions. The decision about whether to elect the fair value option
      is applied instrument by instrument, with a few exceptions; the decision is
      irrevocable; and it is applied only to entire instruments and not to portions
      of
      instruments. SFAS No. 159 requires disclosures that facilitate comparisons
      (a)
      between entities that choose different measurement attributes for similar assets
      and liabilities and (b) between assets and liabilities in the financial
      statements of an entity that selects different measurement attributes for
      similar assets and liabilities. SFAS No. 159 is effective for financial
      statements issued for fiscal years beginning after November 15, 2007. Early
      adoption is permitted as of the beginning of a fiscal year provided the entity
      also elects to apply the provisions of SFAS No. 157. Upon implementation, an
      entity shall report the effect of the first re-measurement to fair value as
      a
      cumulative-effect adjustment to the opening balance of retained earnings. Since
      the provisions of SFAS No. 159 are applied prospectively, any potential impact
      will depend on the instruments selected for fair value measurement at the time
      of implementation. The Company does not expect the adoption of this
      pronouncement to have a material impact on its financial
      statements.





In
      December 2007, the FASB issued SFAS 141R, “ *Business
      Combinations - Revised 2007* ,”
which
      replaces FASB Statement No. 141, “ *Business
      Combinations* .”
SFAS
      141R ** establishes
      principles and requirements intending to improve the relevance, representational
      faithfulness, and comparability of information that a reporting entity provides
      in its financial reports about a business combination and its effects. This
      is
      accomplished through requiring the acquirer to recognize assets acquired and
      liabilities assumed arising from contractual contingencies as of the acquisition
      date, measured at their acquisition-date fair values. This includes contractual
      contingencies only if it is more likely than not that they meet the definition
      of an asset or a liability in FASB Concepts Statement No. 6, “ *Elements
      of Financial Statements* - *a
      replacement of FASB Concepts Statement No. 3.* ” ** This
      statement also requires the acquirer to recognize goodwill as of the acquisition
      date, measured as a residual. However, this statement improves the way in which
      an acquirer’s obligations to make payments conditioned on the outcome of future
      events are recognized and measured, which in turn improves the measure of
      goodwill. This statement also defines a bargain purchase as a business
      combination in which the total acquisition-date fair value of the consideration
      transferred plus any noncontrolling interest in the acquiree, and it requires
      the acquirer to recognize that excess in earnings as a gain attributable to
      the
      acquirer. This therefore improves the representational faithfulness and
      completeness of the information provided about both the acquirer’s earnings
      during the period in which it makes a bargain purchase and the measures of
      the
      assets acquired in the bargain purchase. The Company does not expect the
      adoption of this pronouncement to have a material impact on its financial
      statements.





In
      December 2007, the FASB issued SFAS No. 160, “ *Noncontrolling
      Interests in Consolidated Financial Statements - an amendment of ARB No.
      51,* ” ** which
      establishes accounting and reporting standards to improve the relevance,
      comparability, and transparency of financial information in its consolidated
      financial statements. This is accomplished by requiring all entities that
      prepare consolidated financial statements, except not-for-profit organizations,
      to: (a) clearly identify, label, and present ownership interests in subsidiaries
      held by parties other than the parent in the consolidated statement of financial
      position within equity, but separate from the parent’s equity; (b) clearly
      identify and present both the parent’s and the noncontrolling interest’s
      attributable consolidated net income on the face of the consolidated statement
      of income; (c) consistently account for changes in parent’s ownership interest
      while the parent retains its controlling financial interest in its subsidiary
      and for all transactions that are economically similar to be accounted for
      similarly; (d) measure any gain, loss or retained noncontrolling equity at
      fair
      value after a subsidiary is deconsolidated; and (e) provide sufficient
      disclosures that clearly identify and distinguish between the interests of
      the
      parent and the interests of the noncontrolling owners. This Statement also
      clarifies that a noncontrolling interest in a subsidiary is an ownership
      interest in the consolidated entity that should be reported as equity in the
      consolidated financial statements. SFAS No. 160 is effective for fiscal years,
      and interim periods on or after December 15, 2008. The management of the Company
      does not expect the adoption of this pronouncement to have a material impact
      on
      its financial statements.


10


**BNH
      INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**


**SEPTEMBER
      30, 2008 AND DECEMBER 31, 2007**


(Unaudited)




**Item
      2. Management’s Discussion and Analysis of Financial Condition and Results of
      Operation** .





**Overview**





We
      have
      not generated any revenue since our inception. We are a development stage
      company with limited operations. Our auditors have issued a going concern
      opinion. This means that our auditors believe there is substantial doubt that
      we
      can continue as an ongoing business for the next twelve months. ****





**Plan
      of Operation**





We
      have
      not had any revenues since our inception on September 4, 2007. Over the next
      twelve months we intend to create a customer base in environmentally conscious
      retail locations and among foodservice operators.





Our
      objective is to purchase bioplastic utensils from Far-East manufacturers and
      import these bioplastic utensils initially to Israel for distribution to both
      retail and foodservice industry customers. We intend to purchase and distribute
      both a private label line and our own branded products. The Company plans to
      store the utensils and ultimately sell and ship them to Israel. Ultimately,
      the
      Company’s goal is to become an industry leader in the marketing and reselling of
      bioplastic utensils first in Israel, and eventually in the United
      States.





We
      plan
      to sign purchasing agreements with manufacturers which will take into account
      a
      reduced price based on order quantities. We plan on negotiating volume-based
      contracts with suppliers. Thus, as sales increase, we hope that our purchase
      price per unit will decrease. We intend to purchase only from suppliers that
      commit to adhere to our packaging requirements; suppliers must have the ability
      to source their own materials for the printing of the packages. It is our intent
      to order from manufacturers that can provide us with all of our product/service
      needs. Such facilities will be responsible for sourcing, printing, and packaging
      materials, and for shipping the finished products to our customers.





In
      the
      event that due to stock outages only products with generic packaging are
      available to purchase, we intend to receive a discount for non-branded products.
      In such a scenario, we may ship the bioplastic products to third party vendors
      for re-branding or have the supplier re-brand the products via a special project
      kitting process. Costs may increase slightly for these scenarios.





**Results
      of Operations**





**Revenues**





We
      had no
      revenues for the period from September 4, 2007 (date of inception) through
      September 30, 2008.





**Expenses**





Our
      expenses for the three month period ended September 30, 2008 were $7,961. Our
      expenses for the nine month period ended September 30, 2008 were $22,565 and
      since our inception were $48,363. These expenses were comprised primarily of
      professional fees and general and administrative expenses.





**Net
      Income (Loss)**





Our
      net
      loss for the three month period ended September 30, 2008 was $7,961. Our net
      loss for the nine month period ended September 30, 2008 was $22,565. During
      the
      period from September 4, 2007 (date of inception) through September 30, 2008,
      we
      incurred a net loss of $48,363. This loss consisted primarily of professional
      fees and administrative expenses. Since inception, we have sold 7,000,000 shares
      of common stock.


11


**BNH
        INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008 AND DECEMBER 31, 2007**
 (Unaudited)


**Liquidity
      and Capital Resources**




Our
      balance sheet as of September 30, 2008, reflects assets of $17,951. Cash and
      cash equivalents from inception to date have been insufficient to provide the
      working capital necessary to operate to date.




We
      anticipate generating losses and, therefore, may be unable to continue
      operations in the future. If we require additional capital, we would have to
      issue debt or equity or enter into a strategic arrangement with a third party.
      There can be no assurance that additional capital will be available to us.
      We
      currently have no agreements, arrangements or understandings with any person
      to
      obtain funds through bank loans, lines of credit or any other sources.




**Going
      Concern Consideration**




The
      financial statements contained herein for the fiscal quarter ended September
      30,
      2008, have been prepared on a “going concern” basis, which contemplates the
      realization of assets and the satisfaction of liabilities in the normal course
      of business. For the reasons discussed herein and in the footnotes to our
      financial statements included herein, there is a significant risk that we will
      be unable to continue as a going concern. Our audited financial statements
      included in our Registration Statement on Form S-1 for the period ended December
      31, 2007, contain additional note disclosures describing the circumstances
      that
      lead to this disclosure by our registered independent auditors.





**Off-Balance
      Sheet Arrangements**





We
      have
      no off-balance sheet arrangements.





**Item
      3. Quantitative and Qualitative Disclosures about Market
      Risk.**





None




**Item
      4. Controls and Procedures**.




**Disclosure
      Controls and Procedures**




Under
      the
      supervision and with the participation of our management, including our Chief
      Executive Officer and Chief Financial Officer, we have evaluated the
      effectiveness of our disclosure controls and procedures, as defined in Rule
      13a-15(e) under the Securities Exchange Act of 1934, as amended, as of the
      end
      of the period covered by this quarterly report. Based on that evaluation, these
      officers concluded that our disclosure controls and procedures were effective
      as
      of September 30, 2008.





**Internal
      Control over Financial Reporting**




There
      has
      been no change in our internal control over financial reporting, as defined
      in
      Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended, during
      the
      quarter ended September 30, 2008 that has materially affected, or is reasonably
      likely to materially affect, our internal control over financial reporting.




In
      the
      ordinary course of business, our internal control over financial reporting
      changes as we modify and enhance our processes and information technology
      systems to meet changing needs and increase our efficiency. Any significant
      changes in internal controls are evaluated prior to implementation to help
      maintain the continued effectiveness of our internal control. While changes
      have
      occurred in our internal controls during the quarter ended September 30, 2008,
      there were no changes that materially affected, or are reasonably likely to
      materially affect, our internal control over financial reporting.


12





**PART
      II**





**Item
      1. Legal Proceedings.**





None.





**Item
      1A. Risk Factors.**




There
      have been no material changes from the risk factors disclosed in our
      Registration Statement on Form S-1 filed on April 16, 2008.





**Item
      2. Unregistered Sales of Equity Securities and Use of Proceeds.**





None.




**Item
      3. Defaults Upon Senior Securities.**





None.





**Item
      4. Submission of Matters to a Vote of Security Holders.**





None.





**Item
      5. Other Information.**





None.





**Item
      6. Exhibits.**




**Exhibit**
              **Number**
            
            **Exhibit
                Description**3.1
            -
            Certificate
                of Incorporation.*3.2
            -
            Bylaws.*31
            -
            Rule
                13a-14(a)/15d-14(a) Certification of Principal Executive and Financial
                Officer32
            -
            Section
                1350 Certification of Principal Executive and Financial
                Officer




*
      incorporated by reference from Registrant's Registration Statement on Form
      S-1
      filed on April 16, 2008 Registration No. 333-150266.


13


SIGNATURES




Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.




BNH
      INC.


By:
                /s/
                    Nehemya HesinNehemya
                    HesinTitle:
                    President, Treasurer and Director(Principal Executive Officer, Principal Financing Officer and Principal Accounting Officer)





Dated:
      November 12, 2008


14